Trump Administration Cancels $23 Million Grant for Vermont Tech Hub
Washington (WCAX) – In a striking move, the Trump administration has canceled a significant $23 million grant aimed at funding Vermont’s "Tech Hub." This initiative, led by the University of Vermont (UVM) in collaboration with GlobalFoundries, focuses on the production of innovative gallium nitride semiconductors, vital components for a range of applications from automobiles to advanced defense systems.
Originally announced by the Biden administration in January, the grant was intended to support three key projects: an $11 million design facility at UVM, $7 million for workforce development initiatives across Vermont schools, and funding for the hub’s administrative team and a portion of the testing lab at OnLogic.
The U.S. Commerce Department deemed the grant process as “rushed, opaque, and unfair,” prompting the decision to withdraw funding. This news has been met with disappointment from tech hub officials, but they remain optimistic about reapplying in the upcoming summer cycle. Doug Merrill from UVM expressed confidence, stating that the mission of the tech hub aligns closely with the current administration’s priorities and that they plan to be even more competitive in securing future funding.
The tech hub’s officials anticipate a decision on their reapplication by early next year. Meanwhile, they are actively pursuing regional collaborations, including a forthcoming partnership with the Northeast Microelectronics Coalition to establish a testing lab. Additionally, they have secured other grants to continue advancing workforce development efforts.
Amid these challenges, the initiative persists, driven by its potential contributions to both national security and economic growth. In contrast, former President Trump has criticized recent CHIPS Act subsidies, advocating instead for tariffs to bolster domestic semiconductor production.
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